Iraq: Partnerships With International Banks Promote Investment

Iraq News –

In order to achieve sound economic growth and attract global investment, called for an economist to establish a bank development with a capital of a large rate of 5 to 10 billion dollars as a sector mixed, administered in the spirit of the private sector, with the trend to achieve partnerships with international banks to pay for the process of development and investment forward.

Economic expert on behalf Antoine believes that this bank will achieve development in all sectors and grants loans to investors without seeking assurances incapacitating, the price of the benefits of appropriate so as not to swallow the interest earnings of the project and be at the same time a competitor to private sector banks, what contributes to the operation of capital and giving soft loans at an interest rate few, especially as interest rates account for about 12 to 14 percent, which is suitable for the investor for not producing dam costs.

The expert pointed out in a press statement, that the banking system in Iraq has dropped during the past two or three years for the global banking system, for several reasons, including wars and the siege and isolation from the world, but it is nevertheless necessary to move taken important steps, including the amendment of the law of banks, especially Article 28, giving the right to practice acts of investment.

The Article 28 (prohibited activities) of the Banking Act No. 94 of 2004 states: “I do not exercise any bank involved as an agent, partner, or joint owner in the trade of wholesale or piecemeal or in manufacturing processes or transportation or agriculture or fisheries or mining or building to ensure secure or activities other works except for activities authorized under Article 27, and despite the advances may be a bank and written authorization in advance from the Iraqi Central Bank to be exercised temporarily or participate in the exercise of these activities as may be necessary for the performance of dues and may the Iraqi Central Bank to ask the bank stop these activities on a specific date.”

He added, Antoine said the establishment of a banking system is built on confidence and provide safety, stability and departments efficient and benefit from the experiences of international banks and enter into partnerships with them to achieve the process of development and investment must be subject to the observations of specialists and experts, as well as the World Bank and the Organization of transparency and international organizations concerned, explaining evaluate these organizations indicates a The business environment in Iraq unattractive need to re-evaluation and reform and lacked a lot of control and legislation and red tape-dominated, along with the loss of integrity in the evaluation process, and the laws disruptive to many businesses.

He continued expert: “So far, there are no investments in fact the level of ambition with the exception of the oil sector as a basic need, particularly that Iraq is the best investment opportunity in this sector for solutions ranked fourth in oil reserves, the country also has a substantial imports outweigh the needs and exceed 150 billion dollars. as the management of Iraq’s imports need to competence and integrity in accordance with the aspirations and strategic plans in each ministry, as well as the reform of the banking system, on the grounds that the banks are the main pillar of the process of investment and economic growth in the country.”

So called Antoine to speed the application of the curriculum economic within the government’s program clearly and visions of economic, through orientation towards a market economy and the development of strategic integrated economic of the country, in addition to attracting talent, expertise and elites competent for the advancement of the Iraqi economy and the achievement of an economic boom.